Why are so many people shunning contract trading?
This concept is wrong;
If the contract is liquidated, the spot will also return to zero;
Whether you are doing contract or spot trading, you are trading, and the most important thing in trading is the trader's own mentality and strategy;
Stop loss is a safety valve in contract trading
Obviously you can set a stop loss, why do some people still have a liquidation?
First of all, stop loss can indeed limit a single loss.
However, for heavy traders, even if there is a stop loss, the psychological pressure can still overwhelm their rationality, and they will eventually be unable to escape the fate of liquidation.
There is not much substantial difference between setting a stop loss and not setting a stop loss for light contract trading;
The tolerance space for light trading is larger, you can wait until the market really reverses before considering closing the position, instead of constantly stopping losses in the process!
It is not difficult to find that heavy positions and counter-trend operations are the driving forces behind the scenes.
Stop loss is just a tool, not a life-saving straw for contract trading.
The key to avoiding liquidation is rational position holding, trend judgment, and good emotional management. Remember, on the road of trading, both mentality and strategy are important to achieve long-term stability.
Observation: CKB, WLD, POL, REEF, SUI, etc.;
